Savient Receives Court Approval Of Key "First Day" Motions

Savient Receives Court Approval Of Key "First Day" Motions
Court Grants Orders to Support Business Operations
KRYSTEXXA® Continues to be Commercially Available in United States
PR Newswire
BRIDGEWATER, N.J., Oct. 16, 2013
BRIDGEWATER, N.J., Oct. 16, 2013 /PRNewswire/ -- Savient Pharmaceuticals, Inc.
(NASDAQ: SVNT)("Savient") announced today the approval of its "first day"
motions by the U.S. Bankruptcy Court for the District of Delaware (the
"Court") that will allow the Company's operations to continue uninterrupted
through the Chapter 11 process.
The Court approval allows the Company to conduct its business uninterrupted
and continue to meet its operational financial obligations throughout this
process, including the timely payment of future employee wages and salaries,
as well as maintain benefits as usual; continued servicing of distributors and
wholesalers to ensure timely fulfillment of orders and shipments; and other
obligations to physicians and patients who depend on the life-changing
KRYSTEXXA® therapy.
As previously announced, Savient filed voluntary petitions under Chapter 11 of
the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware
on October 14, 2013. Savient also filed a motion seeking authorization to
pursue a sale process under Section 363 of the U.S. Bankruptcy Code. To this
end, Savient has entered into an acquisition agreement with a "stalking horse"
bidder, Sloan Holdings C.V., a subsidiary of US WorldMeds, LLC, under which
Sloan will acquire substantially all of the assets of Savient, including all
KRYSTEXXA® assets, for approximately $55 million. The acquisition agreement
contemplates a Court-supervised auction process, which is designed to achieve
the highest or best offer for the Company's assets.
Additional information about this process and proposed asset sale, as well as
filings and other documents related to the reorganization proceedings, is
available through Savient's claims agent, the Garden City Group, at
www.gcginc.com/cases/svnt or 866-297-1238.
Skadden, Arps, Slate, Meagher & Flom LLP and Cole, Schotz, Meisel, Forman &
Leonard P.A. are serving as the Company's legal advisors and Lazard is serving
as its financial advisor.
About KRYSTEXXA®
KRYSTEXXA® (pegloticase) is a PEGylated uric acid specific enzyme for
administration by intravenous infusion. The active substance pegloticase is a
covalent conjugate of uricase produced by a genetically modified strain of
Escherichia coli and monomethoxypoly (ethylene glycol). KRYSTEXXA was
approved in the U.S. in September 2010.KRYSTEXXA is indicated in the U.S. for
the treatment of chronic gout in adult patients refractory to conventional
therapy.KRYSTEXXA is not recommended for the treatment of asymptomatic
hyperuricemia. KRYSTEXXA was approved by the EMA in January 2013 to treat
severe, debilitating chronic tophaceous gout.
About Savient Pharmaceuticals, Inc.
Savient Pharmaceuticals, Inc. is a specialty biopharmaceutical company focused
on developing and commercializing KRYSTEXXA® (pegloticase) for the treatment
of chronic gout in adult patients who do not respond to conventional therapy.
Savient has exclusively licensed worldwide rights to the technology related to
KRYSTEXXA and its uses from Duke University ("Duke"), which developed the
recombinant uricase enzyme used in the manufacture of KRYSTEXXA, and Mountain
View Pharmaceuticals, Inc. ("MVP"), which developed the PEGylation technology
used in the manufacture of KRYSTEXXA. Each of MVP and Duke have been granted
U.S. and foreign patents disclosing and claiming the licensed technology.
Savient also owns or co-owns U.S. and foreign patents and patent applications,
which collectively form a broad portfolio of patents covering the composition,
manufacture and methods of use and administration of KRYSTEXXA. In the U.S.,
Savient also supplies Oxandrin® (oxandrolone tablets, USP) CIII and
co-promotes Kineret® (anakinra) with Swedish Orphan Biovitrum AB (Sobi). For
more information, please visit the Company's website at www.savient.com.
Cautionary Note Regarding Forward-Looking Statements
Certain information in this press release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. All statements contained in this press release that are not
statements of historical fact, including statements regarding the satisfaction
of conditions to the closing of the proposed asset sale, the potential of the
proposed asset sale and the expectation that the Chapter 11 filings will
enable us to sell our assets in an orderly manner and maximize value for our
stakeholders, the necessity of bankruptcy court approvals to conduct and
complete the proposed asset sale and other statements regarding our strategy,
future operations, future financial positions, future performance,
commercialization of KRYSTEXXA, prospects and plans and objectives of
management, should be considered forward-looking statements. We often use
words such as "anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," "may," "predict," "will," "would," "could," "should," "target" and
similar expressions to identify forward-looking statements. Actual results or
events could differ materially from those indicated in forward-looking
statements as a result of risks and uncertainties, including, among others,
the potential adverse impact of the Chapter 11 filings on our liquidity or
results of operations, changes in our ability to meet financial obligations
during the Chapter 11 process or to maintain contracts that are critical to
our operations, the outcome or timing of the Chapter 11 process and the
proposed asset sale (including the occurrence or likelihood of an auction),
the effect of the Chapter 11 filings or proposed asset sale on our
relationships with third parties, regulatory authorities and employees,
proceedings that may be brought by third parties in connection with the
Chapter 11 process or the proposed asset sale, Bankruptcy Court approval or
other conditions to the proposed asset sale, and the timing or amount of any
distributions to the Company's stakeholders. For a discussion of some of the
additional risks and important factors that we believe could cause actual
results or events to differ from the forward-looking statements that we make,
see the sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our Quarterly
Report on Form 10-Q for the quarter ended June 30, 2013. In addition, new
risks and uncertainties emerge from time to time, and it is not possible for
the Company to predict or assess the impact of every factor that may cause its
actual results or events to differ from those contained in any forward-looking
statements. Accordingly, you should not place undue reliance on any
forward-looking statements contained in this press release. Any
forward-looking statements speak only as of the date of this press release. We
undertake no obligation to publicly update forward-looking statements, whether
as a result of new information, future events or otherwise.
SVNT — G
Contact:
John P. Hamill, Co- President and Chief Financial Officer / Philip K.
Yachmetz, Co-President and Chief Business Officer
information@savient.com
908-864-7382
Kelly Sullivan / James Golden
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
SOURCE Savient Pharmaceuticals, Inc.
Website: http://www.savient.com